If you moved because of a change in your job location or because you started a new job, you may be able to deduct your moving expenses if your move is closely related to the start of work. To qualify for the moving expense deduction, you must meet the distance and the time tests. Your move will meet the distance test if your new main job location is at least 50 miles farther from your old home than your old main job location was. To figure this, you take the distance from your old residence to your new job and subtract the distance from your old residence to your old job. If the result is 50 miles or more, you have met the distance test. If you are a member of the armed forces and your move was due to a permanent change of station, you do not have to meet the distance test.

The second test concerns time. If you are an employee, you must work full time for at least 39 weeks during the 12 months right after you move. If you are self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months right after you move. If you haven't meet the time test by the date your 1996 tax return is due, you may still deduct your moving expenses on your 1996 return as long as you expect to meet the time test. Then, if you don't meet the test, you must either:

1.amend your 1996 return, or

2.report the amount you deducted as income on your 1997 return if you had expected to meet the 39-week test, or on your 1998 return if you had expected to meet the 78-week test.

If you are married and are filing a joint return, only one spouse must meet the time test. You cannot, however, add the weeks your spouse worked to those you worked to satisfy the test.

In general, you do not have to meet the time test if:

1.you are in the armed forces on active duty and your move was due to a permanent change of station; or

2.your job at the new location ends because of death, disability, a transfer for your employer's benefit, or a layoff other than for willful misconduct; or

3.you moved from outside of the United States to the United States because you retired, or you are the surviving spouse or dependent of a person who died while living and working outside the United States.

If you meet the requirements, you can deduct the reasonable expenses of moving your household goods and personal effects and traveling, including lodging to your new home.

Moving expenses are figured on Form 3903, Moving Expenses, and deducted as an adjustment to income on Form 1040. You can only deduct moving expenses that were not reimbursed by your employer.

For additional information, see the instructions to Form 3903 and Publication 521, Moving Expenses.

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